Ola Electric denies regulatory issues, attributes low sales to backlog

Media reports claimed Ola Electric was under scrutiny as the Heavy Industries Ministry probes a gap between its reported February sales of 25,000 scooters and 8,600 Vahan registrations

Ola Electric has responded to recent media reports on its February 2025 sales figures, attributing the issue to a temporary backlog in vehicle registrations and refuting claims of any regulatory concerns.

 

In a statement issued on Friday, the company said its sales remained robust and that efforts were underway to clear the backlog, which had led to inconsistencies in registration data.

 

The electric vehicle manufacturer clarified that the backlog was not due to internal operational challenges and was being resolved steadily. It noted that daily registrations had already exceeded 50 per cent of its average daily sales over the past three months. As of the latest update, 40 per cent of the February backlog had been cleared, with full resolution expected by the end of March 2025, the company said in an exchange filing.

 

 

Allegations of misinformation

 

“This is a straightforward case of a temporary registration backlog, yet certain media outlets and vested interests have deliberately misrepresented it as a regulatory issue through misinformation and smear campaigns,” the Bhavish Aggarwal-led company said.

 

Ola indicated that the reports began circulating after it ended contracts with two national vendors previously responsible for handling vehicle registrations.

 

“Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny. Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability,” it added.  ALSO READ | GM, Hyundai in talks to share pickups, electric vans in North America

 

In a separate exchange filing, Ola Electric disclosed that it had received information requests from the Ministry of Heavy Industries on March 11, 2025, and from the Ministry of Road Transport and Highways (MORTH) on March 18, 2025. The company stated that no regulatory or legal proceedings were currently underway against it.

 

Ola Electric under government scanner

 

Media reports indicated that Ola Electric was under regulatory scrutiny, with the Ministry of Heavy Industries examining discrepancies between the company’s reported sales and actual vehicle registrations.

 

According to Ola Electric, it sold 25,000 electric scooters in February 2025. However, data from the government’s Vahan portal showed only 8,600 registrations for the same period.

 

As part of the ongoing inquiry, the Maharashtra Regional Transport Office (RTO) conducted inspections at several Ola Electric showrooms across the state, including in Pune. Officials checked whether vehicles had valid documentation and were being sold under trade certificates. Following the inspections, 36 scooters were seized in Mumbai and Pune over compliance violations.

 

Regulatory action has extended beyond Maharashtra. Reports suggest that several Ola Electric outlets in Punjab have shut down, while in Jabalpur, RTO authorities issued notices to the company after unregistered scooters were found being sold without valid trade certification.

 

This is not the first instance of regulatory scrutiny for Ola Electric. Earlier in the year, the Securities and Exchange Board of India (Sebi) issued a warning over lapses in disclosures.  ALSO READ | Unable to repatriate earnings, Rosneft looks for an exit from Nayara Energy

 

Financial performance and challenges

 

A key player in India’s electric two-wheeler segment, Ola Electric competes with firms such as Ather Energy, Bajaj Auto and TVS Motor. Despite rapid expansion, the company has faced criticism over transparency, customer service and its limited service network.

 

In the October–December quarter, Ola Electric reported a loss of ₹564 crore, attributed to weak demand and aggressive discounting. Despite cost-cutting measures, its stock has underperformed since listing, raising concerns among investors about its financial health and long-term sustainability.

 

(With agency inputs)